Co-benefits of including CCS projects in the CDM in India's power sector

Abstract

Abstract:This study examines the effects of the inclusion of the co-benefits on the potential installed capacity of carbon dioxide capture and storage (CCS) projects with a linear programming model by the clean development mechanism (CDM) in India's power sector. It is investigated how different marginal damage costs of air pollutants affect the potential installed capacity of CCS projects in the CDM with a scenario analysis. Three results are found from this analysis. First, large quantity of IGCC with CCS becomes realizable when the certified emission reduction (CER) prices are above US$56/tCO 2 in the integrated Northern, Eastern, Western, and North-Eastern regional grids (NEWNE) and above US $49/tCO 2 in the Southern grid. Second, including co-benefits contributes to decrease CO 2 emissions and air pollutants with introduction of IGCC with CCS in the CDM at lower CER prices. Third, the effects of the co-benefits are limited in the case of CCS because CCS reduces larger amount of CO 2 emissions than that of air pollutants. Total marginal damage costs of air pollutants of US$250/t and US$200/t lead to CER prices of US$1/tCO 2 reduction in the NEWNE grid and the Southern grid.

Policy influence on clean coal uptake in China, India, Australia, and USA

“…CCS is excluded from India's official mitigation scenarios. It is believed that any of its investments will cause price increases, and hence, politically untenable [41]. Biomass power projects are not operational due to financial drawbacks, poor institutional framework, short-sighted electric utility policies, and low environmental concern [42].…”